UCB Parents Recommendations

Loan consolidation

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July 2002

I was wondering if anyone out there had any advice or recommendations on consolidating my student loans??? We are expecting a new baby soon and I'm deperately trying to find little ways to reduce our monthly bills. I recently received info from the Dept. of Education on this, but when they consoilate they take the adverage of the interest rates of all your loans. This is currently around 7.5%. I was hoping to find a lower interest rate than that, but also find a lender that I can trust. Any recomendations for lenders or ways to get information on this subject would be GREATLY appreciated! Anna

Loan consolidation is a great idea if you can't pay your bills right now. BUT of course in the long run you will pay much more because you are spreading out your loans over a longer time and therefore paying more interest. So if you do it, try to start paying down the principal with extra payments as soon as you can. Also, you didn't ask about this, but it's never a good idea to consolidate loans with your spouse because in case of death or divorce, you would be responsible for the whole joint loan instead of just your own. Sorry to bring up the worst case scenarios, but... Deborah
I recently consolidated my loans with CFS (Collegiate Funding Services) for about 5.5%, and they take off another .25% if you pay by automatic withdrawal from your bank account. I found them very easy to work with, as they were more than happy to take my very large loan amount away from Citibank (and I was more than happy to give it to them). They can be raached at 888-423-7562 and they also have a website www.cfsloans.com. Tara
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